First RMB government bond issued on the Luxembourg Stock Exchange

24.01.2014 (All day)

The Province of British Columbia, Canada, has issued a one-year renminbi denominated government bond on the Luxembourg Stock Exchange, raising 2,5bn Yuan. The Dim Sum bond is priced at 2,5%. British Columbia is the first foreign government to issue an RMB bond. It is also the largest RMB bond issued to date.

The bond was quickly over-subscribed. Buyers were located in Asia (59%), the US (40%) and Europe. The buyers were central banks (62%), private sector funds (18%), corporates (10%), banks (7%) and private banks (3%).

Like Luxembourg, British Columbia is AAA rated. The government bond is anticipated to be AAA rated, too. The money raised by the issue was reinvested in CNH investments with the aim of hedging foreign exchange risk.